hi
1-we have got 2 products one is long term around 20 years and other of the same nature for onw year in both of the cases we take payment in advance before allowing customer to utilise it, in such a case how the setup is done here that long term use uneaned as credit and other revenue,
2- we have to take advance in arrears type with the invoice but is there is another process associated with it that we have run to amortize the amount with the passage of time
3-we have got some statistical data which we also want to capture at the time on entering the invoice remember we dont hav eom with ourself in such acase is there is any work around available
4-suppose instantly we want to know how mount we have available at the movement by amortization or by the selling of goods then we have to run reveinue recog process then transfer it in to gl if we dont run and try to transfer in to gl can we do it without it or there is work around available to know the balance of reveune by remaining in ar
AR quries
Dear Mr.Khan
Need some more clarifications about the scenarios mentioned by you.
1. Please clarify whether you are collecting the 100% money in advance or in installments, particulary for long term deals.
2. You can think to create line level transaction flexfield for recording statistical data.
3. If you define two types of aging reports, one for past dues and another for future receivables, you can get the information described by you.
Based on the scenario details given by you, the following solution appears to my mind.
You can create only one invoice at the time of Contract booking (for 20 years term) by customer. This will be of Invoice class "Invoice" and not "Deposit". And entry will be Receivables a/c Debit and Deferred Revenue a/c credit. (With full amount)
To book the revenue at the time of project completion, User will enter a journal manually, debiting deferred revenue a/c and crediting revenue.
If you are collecting the money in different instalments from customers, you can create multiple receipts against one invoice.
However you will have to create Memolines i.e. there will be 2 memo lines. First for deferred revenue and another for revenue. If product is sold which still need to be delivered then use Deferred revenue Memo line and incase a ready to use product is sold then Revenue Memo line can be used.
Hope, this will suit to your needs.
Regards
Need some more clarifications about the scenarios mentioned by you.
1. Please clarify whether you are collecting the 100% money in advance or in installments, particulary for long term deals.
2. You can think to create line level transaction flexfield for recording statistical data.
3. If you define two types of aging reports, one for past dues and another for future receivables, you can get the information described by you.
Based on the scenario details given by you, the following solution appears to my mind.
You can create only one invoice at the time of Contract booking (for 20 years term) by customer. This will be of Invoice class "Invoice" and not "Deposit". And entry will be Receivables a/c Debit and Deferred Revenue a/c credit. (With full amount)
To book the revenue at the time of project completion, User will enter a journal manually, debiting deferred revenue a/c and crediting revenue.
If you are collecting the money in different instalments from customers, you can create multiple receipts against one invoice.
However you will have to create Memolines i.e. there will be 2 memo lines. First for deferred revenue and another for revenue. If product is sold which still need to be delivered then use Deferred revenue Memo line and incase a ready to use product is sold then Revenue Memo line can be used.
Hope, this will suit to your needs.
Regards
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